USD/CAD pares early losses, turns positive on the day above 1.2300
- USD/CAD gains traction during the American trading hours.
- US Dollar Index continues to fluctuate below 92.00.
- Mixed macroeconomic data releases from US failed to trigger a significant market reaction.
The USD/CAD pair dropped to a daily low of 1.2280 in the early American session on Thursday but managed to reverse its direction. As of writing, the pair was up 0.1% on the day at 1.2316.
DXY holds below 92.00 after US data
Earlier in the day, the US Bureau of Economic Analysis announced that it left the annualized first quarter Real GDP growth unchanged at 6.4% in its final estimate. This reading matched the market consensus and was largely ignored by market participants.
Other data from the US revealed that the weekly Initial Jobless Claims edged lower to 411K from 418K but came in weaker than the market expectation of 380K. Finally, the US Census Bureau's monthly publication revealed that Durable Goods Orders increased by 2.3% in May, compared to analysts' estimate of 2.7%.
Following these data, the US Dollar Index (DXY) is posting small daily gains around 91.80, helping USD/CAD stay in the positive territory.
Meanwhile, crude oil prices are trading in a relatively tight range near Wednesday's closing level, allowing the USD's market valuation to continue to impact USD/CAD's movements.
Later in the session, Federal Reserve Bank of New York President John Williams' comments on the policy outlook will be looked upon for fresh impetus. On Friday, the PCE inflation report will be featured in the US economic docket.
Technical levels to watch for